For a long time, gold and silver have been the most prized assets in the world and have been treasured and stored as wealth for centuries.
Even in the modern world, gold and silver are still relevant and are arguably the most common financial instrument for investing.
Regardless of the political or financial environment, you can depend on your gold and silver bullions to safeguard against inflation.
Moreover, if you are an investor invested in stocks and cryptocurrencies, you must consider investing in tangible assets like gold and silver to balance your portfolio. It will hedge your funds, and having precious metals in your portfolio makes it easier for you to liquidate your assets whenever you need them since they are always in demand, and you can sell them anywhere in the world.
If you are still unsure about investing in precious metals, here are some reasons why you must.
- Easy to liquidate
Gold and silver are easy to liquidate as compared to any other asset. For instance, if you have real estate in your portfolio, it can take months to liquidate that asset. On the other hand, you can sell your silver and gold bullions in a matter of minutes.
Other investments may lose their value over time, or their market might be in a slump, rendering them useless when you need to liquidate them.
Many investors cannot sell their stocks when they need cash if the market is in a bearish phase; if they do so, they would have to suffer a loss. But, that is not the case with precious metals.
You can sell them at the current rates as per live gold and silver prices.
- They are always in demand.
These prized possessions often remain in demand no matter what happens in the world.
The fact that such precious metals are mined lesser than before makes them even more valuable.
Investing in precious metals provides the investor with a certain degree of assurance unparalleled by any other asset. Many people consider precious metals their safety net in times of crisis.
- Hedge against inflation
Other investments may be unable to keep up with inflation and precious metals. Inflation is the silent killer of your wealth; it reduces the power of your assets and shrinks their utility.
But, these precious metals are inflation-proof as their prices also increase with the inflation and often, the increase in their prices is more than the rate of inflation.
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- Universal Value
Precious or noble metals such as gold or silver are valued worldwide, and they do not lose their intrinsic value anywhere in the world.
The value of your precious metals would be the same in the USA as in Australia. So, irrespective of where you are in the world or where you take your investment, they will not lose their value.
- Valued physical possession
Investing in valued possessions such as precious metals protects you from adversities in the world. In case of internet block out, financial crisis, market crash, and investment fraud, you will be covered as your investments are in hand.
You must invest in precious metals such as gold and silver to hedge your funds against inflation and market volatility and diversify your portfolio.